ANNOUNCEMENT 29 Mar 2014

In March 2014, the government of Cuba announced altered domestic business conditions for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Reuters, March 19, 2014, 'Cuba set to approve new foreign investment law': http://www.reuters.com/article/2014/03/19/cuba-reform-investment-idUSL2N0MG14H20140319
Gaceta Oficial de la Republica de Cuba, Ley de Inversi?n Extranjera (in Spanish): http://www.gacetaoficial.cu/html/leyinversionextranjera.html#DF
Affected trading partners: http://carleton.ca/economics/wp-content/uploads/cep02-04.pdf


Inception date: 29 Mar 2014 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

On March 29, 2014, the National Assembly of People's Power of Cuba in an extraordinary session passed a new foreign investment law, replacing older regulations from 1982 and 1995. The new law strengthens guarantees to investors. Some of the most salient changes:

  • Foreign Direct investment will be allowed in almost all sectors of the economy, apart from healthcare, education and national defence;
  • Investors cannot face arbitrary expropriation, and in the case of nationalisation of investments, investors are entitled to compensation;
  • The government guarantees the free transfer abroad of capital gains;
  • There will be a significant reduction in administrative requirements faced by foreign investors;
  • Certain tax breaks and holidays can be obtained by investors, in certain circumstances, upon approval by the Executive Committee of the Council of Ministers.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A